Bitcoin Price and Technical Market Analysis May 23rd, 2020

• The daily candle closed below the range $9200-9400.

• An unsuccessful attempt to grow today will increase the risk of the test of $9080.

• Closing a weekly candle below $9400 could provoke the fall continuation with a final target $7770.

Yesterday’s trading on Bitcoin market took place in the form of a price correction after a sharp fall impulse on 21 May. During the day, buyers managed to raise Bitcoin price by 1% from the opening price. Trading volumes are 2 times smaller than during the previous fall. This fact is not in favor of buyers. Market purchases are equal to market sales, which gives buyers a chance to rehabilitate their price positions over the weekend.

However, to confidently continue trading in the black triangle, buyers need to behave more aggressively in the market. At the moment, the price has stopped in the range $9200-9400, which is the middle line of the triangle. Given the nature of the price growth in Bitcoin market, sellers may not allow buyers to continue to grow. They may start a new wave of fall with the first target $8860 and a likely continuation to $7770. We assume that yesterday market participants overestimated the situation and sellers significantly reduced the pressure, and buyers very carefully tried to buy Bitcoin. Therefore, the lack of serious actions by sellers today will give a new impulse to the price fall.

In the 4-hour timeframe, we see that buyers quite simply managed to raise Bitcoin price to $9220:

Within this mark, the price began to slow down and there is a risk of correction to $9080. As you can see from the horizontal volumes, buyers have gathered at this point a sufficient liquid zone, after the test of which will be possible to break and fix above the range $9200-9400. As you can see in the chart, the local zone ​​$9200-9400 is not a serious obstacle to price movement and a failed attempt to break it can only indicate the weakness of this party.

The dominance of BTC decreased yesterday, crossing the critical point 67.55%:

It was quite noticeable if we analyze the rebound which buyers of Bitcoin and other crypto coins managed to make. While Bitcoin market suffers below the range $9200-9400 other coins have increased their impact on the crypto market and covered the fall of 21 May (take the example of ETH). So far, the best scenario for Bitcoin is consolidation, during which other coins can show good price growth. In the worst case, the crypto market will expect a new wave of fall with a critical point for Bitcoin at $7700. Let’s see if buyers will be able to fix above $9400 today. Tomorrow we will forecast the probable movement of the Bitcoin price for next week.

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